Posted by Donn Cole on December 03, 2003 at 11:52:10:
The Money Idea “Cash In Your Pocket Plus Cash Flow” by Alex Gurevich, TX sounded like EXACTLY the right way for me to go, but left me with several questions.
(1) He suggested getting owners to call you who own free and clear and have listed with a realtor but no success selling. He says offer them about what they could get after deducting real estate sale commission and closing costs, with payment of half in cash now (that you get from a money investor) and half when your tenant buyer refinances in five years.
My question: Since they have already listed with a realtor, how do I buy without them paying the real estate sales commission? Do I tell them to call me when the listing expires?
(2) The numbers he quoted mention I would clear $4-5K after closing costs. What closing costs is he referring to? If I buy from seller on contract for deed I thought there were no closing costs. Or is he talking about closing costs when my tenant buyer closes in five years?
(3)What paperwork does my private investor get to secure his money by the property but not give him half ownership of the property I am buying, just his stated 15% interest on the money he put up?
Thanks for helping me understand this.
Donn Cole, CO